Consumer price inflation in Britain eased to 2.8% in April, official figures showed Tuesday, but remained stubbornly above the government's target and kept up pressure on interest rates.
The rate for the 12 months ending in April compared to 3.1% in March, as lower prices for gas and electricity moderated higher prices for clothing and restaurant meals, the Office for National Statistics said.
Earlier this month, the Bank of England raised its base lending rate by a quarter of a point to 5.5% in an attempt to stem inflation.
The retail price index, which includes housing costs, was up to 4.5% in April, compared to 4.8% in March.
Last month's inflation report sent the British pound above $2 for the first time in more than 15 years.
Howard Archer, analyst at Global Insight, said he believed the Bank of England will raise interest rates again despite April's better figures.
The Monetary Policy Committee will want "some further insurance against the longer-term inflationary dangers stemming from firms' overall increased confidence in their pricing power, excessively buoyant money supply growth, capacity constraints and the danger that wages could yet move higher," Archer said.